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SEC Filings, Earing Reports, Press Releases
Fisher Communications Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 7, 2009 06:31PM
Fisher Communications Inc. (FSCI) filed Quarterly Report for the period ended 2009-06-30.
Highlight of Business Operations:
Repurchase of Senior Notes During the three months ended June 30, 2009, we repurchased $12.8 million aggregate principal amount of our 8.625% senior notes due 2014 (Senior Notes), for total consideration of $11.4 million in cash plus accrued interest of $139,000. A gain on extinguishment of debt was recorded net of a charge for related unamortized debt issuance costs of $249,000, resulting in a net gain of approximately $1.2 million. During the six months ended June 30, 2009, we repurchased $28.0 million aggregate principal amount of our Senior Notes for a total consideration of $24.4 million in cash plus accrued interest of $637,000. We recorded a gain on extinguishment of debt, net of a charge for related unamortized debt issuance costs of $557,000, resulting in a net gain of approximately $3.0 million on the extinguishment of debt for the six months ended June 30, 2009. We did not repurchase any of our Senior Notes during the three and six months ended June 30, 2008.
Dividends on Safeco Corporation Common Stock During the three and six months ended June 30, 2008, we recorded dividends on our shares of Safeco Corporation common stock in the amount of $921,000 and $1.8 million, respectively. No dividend income was recorded in the three and six months ended June 30, 2009, as we sold our remaining Safeco shares in 2008.
Sale of Safeco Corporation Common Stock During the three months ended June 30, 2008, we sold approximately 1.5 million shares of Safeco Corporation common stock, which represented 67% of our total Safeco holdings, for total pre-tax proceeds of approximately $104.1 million. The pre-tax gain on sale of $103.6 million is included in other income, net for the three and six month periods ended June 30, 2008.
Expiration of Seattle Mariners Radio Rights Agreement In July 2008, we announced that we would not renew our radio rights agreement with the Seattle Mariners (the Mariners Agreement). Accordingly, the 2008 season was the final year of our commitments under the Mariners Agreement. Our results for the first six months of 2008 reflect $4.5 million of advertising revenue and $8.1 million of expenses related to the Mariners Agreement. No such advertising revenue or expenses are reflected in our results for the six months ended June 30, 2009.
Termination of National Advertising Representation Agreement In April 2008, we terminated the agreement with our national advertising representation firm. The successor firm will satisfy our contractual termination obligation to the predecessor firm with no cash payment made by us. In the second quarter of 2008, we recognized a net non-cash charge of $5.0 million to selling, general and administrative expenses, and we are amortizing the related net liability as a non-cash benefit over the five-year term of the new agreement. We recognized a $366,000 and $731,000 benefit due to this amortization for the three and six months ended June 30, 2009, respectively.
Bill Gates of Cascade Investment, LLC.
Stocks Discussed: FSCI,